After the launch of Paytm Payments Bank on Tuesday, there are now three Payments bank in the country including India Post Payments Bank and Airtel Payments Bank.

What is a Payments Bank?

As part of its financial inclusion drive, RBI has given nod to differentiated banking to include Payments Bank and Small Finance Banks. Payments bank allows individuals to open savings account with a maximum deposit of Rs. 1 lakh.

Now here is a quick comparison of the different products and services offered by the three Payments banks.

Interest rate

Airtel Payments bank is offering the highest interest rate of 7.25% on savings account while the other two India Post and Paytm Payments banks are offering.5.5% and 4% respectively on an annual basis. At present Airtel Payments Bank is offering the highest return on savings account when compared to other large and small commercial banks.

Cash Withdrawal charges at ATM

As per the RBI rules, in non-metro cities maximum 5 cash withdrawals can be done for free while in case of metro cities only 3 free transactions are allowed. Any transaction over and above this entails Rs. 20 per transaction (financial). Non-financial transaction such as taking a mini statement is chargeable at Rs. 5.

Airtel charges a 0.65% of the withdrawal amount as the transaction fee for withdrawals made using an ATM.

IndiaPost does not charges any fees for withdrawals made at IndiaPost ATM or PNB ATM. At other ATMs you need to pay as per RBI guidelines. Doorstep banking is chargeable as per the transaction amount and can range in between Rs. 15-Rs. 35. The doorstep banking service can be chosen for deposits as well as withdrawals and banking representative completes the transaction at your doorsteps.

Paytm Payments Bank charges for withdrawals in accordance with the norms of RBI.

Online funds transfer

In case you do an intra banking transaction with Airtel Payments bank, you have to shell out no money. However for other online fund transfers to other banks, Airtel Payments bank levies a fee equal to 0.5% of the fund transfer amount irrespective of the mode of transfer.

IndiaPost charges for each of the available mode of fund transfer differently, for IMPS it charges Rs. 5, for NEFT- Rs. 2.5- Rs. 5. With mobile banking, NEFT is free but IMPS is chargeable at Rs. 4 for every fund transfer.